Just graduated from college?

Finally found a job where you

make enough to afford a car? If

you’re looking to buy your first car

but afraid your lack of credit will

get in the way, don’t worry – you

can still qualify for financing, even

without any credit history. Just

follow these steps…

The first thing you should do

before buying a new car is

request a copy of your credit

report from all three major credit

bureaus. Your car dealer will be

looking up your credit history, and

you want to make sure that your

credit score gives an accurate

representation of your history.

Since you don’t know which

bureaus the dealership will be

getting a report from, you want to

make sure all three are correct.

Before you buy a car, it’s important to know exactly what you can afford. Keep in mind that

monthly loan payments aren’t the only expenses you’ll have to pay – there’s also gas,

insurance, and maintenance. Be honest about your monthly budget; if you try to buy out of

your price range, it will cause a lot of problems down the road.

To estimate how much you’ll be paying

in auto insurance, get a quote online.

Keep in mind that a plan with a low

annual percentage rate (APR) will have

lower monthly payments, but will end

up costing you more in interest in the

long run. Shorter contracts tend to have

higher interest rates, but they often end

up saving you money overall.

It pays to do your research when shopping for

a car. Look for used vehicles or leasing

options that may help you save money, and

find out what special offers manufacturers and

local dealerships are offering on certain

models. Don’t just research the cars, either –

be sure to look into the warranty extensions,

protection plans, and other optional expenses

that dealers are offering, and figure out which

ones are worth the additional cost.

Having a family member with a strong credit history cosign on a car loan is often the

easiest way for new car buyers to qualify for financing. If you and your potential cosigner

are both confident that you can make your monthly payments and that signing a loan

together won’t damage your relationship, having an additional signature on your loan can

make buying your first car much easier.

When you go to buy your car, you’ll need to

provide at least six months’ worth of

paystubs/W2s to prove employment and

salary, proof of insurance, up to six personal

references, and proof of school enrollment

and graduation. If you don’t have the

paperwork to show your employment and

income history or haven’t started your new

job yet, have your employer write a letter to

the dealer that confirms your salary.

Congrats! You’ve qualified for a loan and found the car you want. Now all you need to do

before buying is to take your new car for a test drive. Even if you’ve fallen in love with a

car at first sight, do not sign anything before you’ve driven it yourself. If it doesn’t handle

how you want, find a car that does. You don’t want to get stuck with a car you’re not

happy with after all the work it took to get it.

Desert Sun Motors is committed to providing its customers with

the best service and prices on new and used vehicles. To learn

more about our cars, trucks, and SUVs, stop by our New Mexico

dealership or visit www.desertsunmotors.com today.